Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $ 4 10 3 2 $ 19 $ 135,000 163,000 $ 298,000 The product sells for $48 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Units Produced Sold 27,000 23,000 August 27.000 31,000 July The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales $1,104,000 $ 1,488,000 Cost of goods sold 506,000 682.000 Gross margin 598,000 806,000 Selling and administrative expenses 209,000 225,000 Net operating income $ 389,000 $ 581,000 Required: 1. Determine the unit product cost under. a. Absorption costing. b. Variable costing. 2. Prepare variable costing income statements for July and August 3. Reconcile the variable costing and absorption costing net operating incomes